Advice Needed. Self employed and not paid tax for 3 years

ryan871

yes paid in USD but converted by paypal.
Isn't it just the converted payments HMRC are interested in? i.e what shows on my bank statement?

nkkingston

I just report my earnings as they appear in the bank account, post Paypal etc (or cheque - the charges for paying a $ cheque into a £ account are hideous). If you're getting $ cheques are you paying tax on them in the US? When i was writing regularly, I had to supply form W8-BEN to my US publishers to stop being taxed 30% at source. If you have been taxed 30% in the US, you may not need to pay as much tax in the UK, because there's a tax treaty between the two countries to stop people being double taxed. If you do go to an accountant, make sure it's one who understands US tax as well, so you don't end up paying extra.

Helvetica_Van_Buren

How is this thread still going?

Ryan871, an accountant can and will answer all these questions for you. They aren't HMRC spies; whoever you choose will tell you exactly what you need to know to fix this and then tell you how to stop it happening in the future.

Go and see one,be open and honest and follow whatever course of action they suggest.

macca1974

Regarding the Accountant, if you chose to get one (which is a good idea btw!), if you can't get a recommendation, you can just google "accountants in XYZ area" and a list will come up. Set a day aside and go and see 2 or 3 of them and discuss the situation in general and see what they say and how much they will charge. Well worth your time as they will be able and used to dealing with HMRC.

andyfromotley

ryan871 wrote: »

yes paid in USD but converted by paypal.
Isn't it just the converted payments HMRC are interested in? i.e what shows on my bank statement?

No. HMRC are interested in all of your income. If you earnt it HMRC are interested in it. An accountant or good bookeeper will be able to advise you on anything you dont need to declare.(as you have been told umpteen times)

My only advice is do not try to get cute with the taxman at this stage. The fact that you havent paid on time will set their alarm bells ringing do not be tempted to be anything less than fully truthful with them. It could spectaclarly backfire on you. Declare everything, pay what you owe and try to negotiate your way out of any penalty.